READ THE UPLOUDED FILES, the assigment brief to understand everything there is the pass and merit criteria at the end and must be 3 docs for this assigment.
The evidence submissions for this unit are a Research Report, Financial Statements, and Cash Budget.
This should be written in a concise, formal business style using 1.5 spacing and a font size of 12. Preferably, you can use Arial or Calibri font style. You must use appropriate headings, paragraphs, and subsections and ensure that the report is justified and aligned. You need to bold the headings and subheadings, addpage numbers, and include a clear task and assignment/evidence title. You must submit your assignments in MS Word format.
Task A Scenario
Tesco plc has been a prominent player in the UK retail industry for decades, with operations spanning multiple countries. As one of the largest retailers in the UK and a multinational corporation, Tesco plc operates in a highly regulated environment, with stringent oversight from regulatory bodies such as the Financial Reporting Council (FRC) and the UK Government’s Department for Business, Energy & Industrial Strategy (BEIS). Additionally, Tesco plc is committed to upholding high
3
ethical standards in its financial reporting practices to maintain the trust and confidence of its stakeholders.
In this task, you will conduct a thorough assessment of Tesco plc’s accounting function, focusing on its adherence to regulatory requirements and ethical standards.
Task A- Assignment Activity Research Report
The working title you have been given for the report is ‘The role of accounting in Tesco’. The report must be presented as a research paper that is engaging and practical, covering relevant academic theory and using, for example, headings, images, and illustrations. Your report should include the following but is not limited to:
● the purpose and scope of accounting in complex operating environments
● a critical evaluation of the accounting function in informing decision-making and meeting stakeholder and societal needs and expectations
● the main branches of accounting and job skillsets and competencies
● accounting systems and the role of technology in modern-day accounting
● issues of ethics, regulation and compliance and the extent to which they are constraints or threats to the organisation.
Task A- The Guidance You May Use (LO1)
where you need to include the following elements:
➢ Title Page
➢ Table of Contents
Introduction and Background: Introduce the accounting function of Tesco plc, different branches of accounting, e.g., financial, management, auditing, tax, and forensic accounting, and users and uses of financial information, context, and purpose of financial and management accounting.
Explanation and Analysis:
➢ Critically evaluate the purpose of the accounting function in decision-making, meeting organisational, stakeholder, societal needs and expectations in Tesco’s Case.
➢ Critically evaluate how accounting principles contribute to effective financial management. You need to review Tesco’s financial statements, including the income statement, balance sheet, and cash flow statement accessible through their website, to make a critical review of their compliance with regulatory requirements and their accuracy and completeness.
➢Critically evaluate Tesco’s compliance with the relevant accounting, including the International Financial Reporting Standards (IFRS) adopted by the UK.
➢ Critically assess the effectiveness of Tesco’s internal controls framework in ensuring the reliability of financial reporting and preventing fraudulent activities.
➢ Critically review Tesco’s code of conduct and ethics policies to ensure they address key ethical principles such as integrity, honesty, and transparency in financial reporting.
Conclusion:Summarisethefindingstoconcludeyourreport.
References: Include references to link your analysis with current and
relevant academic research.
The research report should include contemporary examples, recommendations and references to relevant academic theories and models.
Note: You are not allowed to use text boxes and page borders in MS Word. You are expected to write your report in a professional academic writing style. You are required to include academic references in Harvard style with in-text citations. An academic form of writing includes linking research coherently to your writing and using referencing, such as a bibliography, examples, citing, and quotes. You must effectively use headings, sub-headings, bullet points and subsections as appropriate. The recommended word limit is 1000–1500 words, excluding references, although you will not be penalised for going under or exceeding the total word limit.
Task A- Research Report Structure
Title page
(Name, unit title, assignment title, date, etc.)
Table of contents
Introduction
Explanation and Analysis (headings and sub-headings)
5. Recommendations 6. Conclusion
7. References
Task B- Financial Statements (LO2, LO3)
Note: The Microsoft Excel sheet has provided you with all the data and key information for the tasks. The Tabs have been created on the same Excel sheet to perform the solution and answers to the numerical problems for Task B and C. You must submit the complete sheet (Task B and C) with answers on Canvas along with Task A, which is a written report in MS Word.
Task B Scenario
is to prepare financial statements for three different types of entities: a sole trader, a partnership, and a not-for-profit organisation. Each entity has provided you with a trial balance containing all their account balances for the current accounting period. Your task is to use this trial balance to prepare the necessary financial statements in accordance with accounting principles, conventions, and standards.”
Part 2- Your objective is to calculate and present relevant financial ratios to evaluate their performance. Additionally, you will compare the performance of each organisation over time by analysing financial ratios from previous periods.
You are a newly hired accountant at Zee’s Accounting Firm. Your first task
Part 1-
Part 1- Task B Compulsory Instructions:
➢ The data has been given in the Excel sheet as Trail Balance for John Doe (sole trader), Smith & Johnes (partnership), and Community Centre (not-for-profit organisation).
For each entity (sole trader, partnership, not-for-profit organisation), prepare the following financial statements:
IncomeStatement.
Statement of Financial Position (Balance Sheet)
➢ Produce financial statements from a given trial balance, making appropriate adjustments.
Ensure that each financial statement complies with relevant accounting principles, conventions, and standards.
Calculate any necessary totals and subtotals accurately.
Present the financial statements in a clear and professional format.
Make the necessary amendments to the financial statements that have been produced for the sole trader, partnership and non-profit organisation. For example, a sole trader can revise the cost of sales if the sole trader wants to achieve a gross profit of 70%.
Critically analyse the income statement for the not-for-profit organisation to assess its current performance and make relevant conclusions and recommendations for the organisation
Critically interpret financial statements and provide explanations or additional information to support your calculations and conclusions.
Use appropriate headings, titles, and formatting to make your assignment easy to read and understand.
Part 2- Task B Compulsory Instructions:
➢ Data is the same as for Part 1, given in the Excel sheet as Trial Balance. The formulas and explanations for the given ratios have been given as well.
Instructions:
➢ Calculate the following financial ratios for each organisation:
1. Profitability Ratios: Gross Profit Margin, Net Profit Margin (for sole trader and partnership)
2. Not-for-ProfitSpecificRatio:ProgramExpenseRatio,Administrative Expense Ratio (not-for-profit organisation)
Present the financial ratios in a clear and organised format, labelling each ratio appropriately.
Interpret the results of each ratio analysis, discussing what the ratios reveal about each organisation’s financial health and performance.
Based on the financial ratio analysis, provide recommendations for each organisation, highlighting areas of strength and areas needing improvement.
Task C- Cash Budget
Scenario: You are a financial analyst at BlueSky Enterprises, a consulting firm specialising in financial management. Your task is to prepare a cash budget for an organisation and provide an in-depth discussion on the benefits and limitations of budgets and budgetary planning, as well as the importance of budgetary control for organisational success.
Cash Budget: Data has been provided on an Excel sheet.
Instructions:
➢ Prepare a Cash Budget based on the data, considering the January opening balance.
Use a Microsoft Excel spreadsheet to calculate the net cash flow at the end of each month.
Compare the monthly cash flow over the three months.
In the next step, identify and evaluate the current problem that will affect
profitability and liquidity.
Propose and justify a solution to the problem that has been identified and explain why.
Discuss the benefits of budgets and budgetary planning for organisations (see the tips given below to explain your answer).
